U.S. Businesses Positive About Opportunities in ASEAN Businesses Applaud U.S.

Governments Decision to Suspend Sanctions on Myanmar September 3, 2012 - U.S. companies are optimistic about business prospects in ASEAN, according to a survey conducted by the U.S. Chamber of Commerce and The American Chambers of Commerce in Asean. In a poll of 356 senior-level executives from U.S. companies across the region, 90% expect that their companys trade and investment in the region will increase over the next five years. Across the region, 21% of U.S. companies are planning to diversify some investments or business from China into ASEAN over the next two years, significantly higher than when asked in 2011. ASEAN is not only a vital U.S. trade and investment partner, it is a bright spot in the global economy, said Tami Overby, vice president of Asia at the U.S. Chamber. As the region continues to integrate, U.S. companies need to develop regional strategies to realize ASEANs potential. For the first time, respondents were asked about Myanmar. While a majority do not export to Myanmar, 33% are exporting, or are planning to export to the country. Vietnam and Thailand had the first and second largest number of respondents considering exporting to Myanmar. A majority of respondents (72%) either support or strongly support the U.S. governments decision to suspend sanctions on Myanmar.

While U.S. companies view the business outlook in ASEAN favorably, the survey found substantial concern regarding corruption, which was the top issue for respondents in all countries except Singapore. Highlights of Findings From Respondents Cambodia Respondents in Cambodia cite the countrys major strengths as a stable government and political system, as well as positive sentiments toward the United States and a high level of personal security. Eighty-one percent of respondents said corruption is a leading concern. Indonesia Indonesias low labor, housing, and office lease costs were among the strengths cited. However, there are also major concerns with corruption (cited by 87% of respondents), as well as laws and regulations, local protectionism, and inadequate infrastructure.

Malaysia While respondents generally expressed satisfaction with the business environment, concerns were cited with laws and regulations. Additionally, 48% of respondents cited corruption as a concern. Philippines Availability of low-cost labor and trained personnel were both cited as positive factors by more than 70% of respondents. However, issues of concern for businesses in the Philippines are corruption, infrastructure, and laws and regulations. Singapore Singapore-based respondents are very satisfied with local factors and government institutions, specifically the stable government and political system (94%) and laws and regulations (86%). Forty percent of respondents expressed dissatisfaction with labor costs; 48% office lease costs; and 77% housing costs. Thailand Respondents report a high degree of personal security, adequate infrastructure, and reasonable housing and office lease costs. Political stability and corruption continue to be concerns. Vietnam Vietnams major strengths are its stable political environment, high degree of personal security, and a stable government and political system. Respondents noted concerns, including infrastructure, corruption, and laws and regulations. Regionally, Vietnam was the top location for planned investment, with 57% of respondents reporting that their companies plan to expand there. Full reports can be found on: www.amcham.org.sg/aseanoutlook. For more information, contact: Bea Vergara Government Liaison/Committee Coordinator American Chamber of Commerce 2nd Floor, Corinthian Plaza, Paseo De Roxas Makati City 1229 Tel #: 818-7911 to 13 loc.213 Fax: 811-3081 Email: bea@amchamphilippines.com

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